Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
magazineOcado’s technology arm gets investors excited again
The Ocado (OCDO) believers have been out in force again as the grocery delivery and warehouse automation company returned to an underlying profit in the six months to 28 May 2023, and confirmed its full year earnings guidance on 18 July.
Since then, the stock has soared nearly 35% to 781p, making it one
of the best performers among FTSE 350 companies.
Driving the performance was the technology solutions business, seen as the engine of growth. But not everyone is convinced. Clive Black of Shore Capital, a long-standing sceptic of the company, continues to highlight limited progress in opening new centres for existing customers Coles (COL:ASX) and Kroger (KR:NYSE).
Still, that life isn’t getting any worse for the company seems to be enough to satisfy investors, for now, although what matters to many will be if Ocado continues to be linked as a takeover target.
Rumours that Amazon (AMZN:NASDAQ) wanted to buy the business in a speculated 800p per share deal gave the stock a bump higher in June before several analysts rained on the parade.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
Issue contents
Feature
- Is active fund management a waste of time?
- Popular funds: big changes? We look at 12 widely-held names
- Not all bad news: Here are 10 stocks benefiting from the cost-of-living crisis
- Can emerging markets make the transition away from fossil fuels?
- Emerging markets: technology at the forefront, overtaking developed world on oil consumption
- Our 2023 share picks have absolutely smashed it: up 23% against a flat market
- Gilts are in demand: we explain how to buy and reasons for doing so
Great Ideas
News
- Wildfires and strikes cause investors to worry about airlines and holiday companies
- Unilever flexes its pricing power muscles, but market share losses are a concern
- Ocado’s technology arm gets investors excited again
- Liontrust shares remain in the doldrums as GAM takeover sees new twist
- Revealed: the shares which shone as the FTSE 100 has bumper week
